IVE Group’s plans to develop a $150 million folding carton and packaging business will be unpacked during the opening keynote presentation at the inaugural ProPack Packaging Forum in Sydney.
The ProPack Packaging Forum will take place from 9.00am to 3.00pm at Shangri-La Sydney during the day on Friday 25 October, alongside the 2024 FESPA Australia Conference and prior to the 2024 ProPrint Awards later that evening.
A keynote presentation will explore IVE Group’s entrance into packaging with the acquisition of the JacPak business which has led to IVE Group MD Matt Aitken’s prediction that the company will become a $150 million packaging business within the next five years.
Speaking at the conference will be Peter Fotiadis from Mattingly, who together with the late Geoff Selig and Matt Aitken, led IVE Group’s $35 million acquisition of JacPak, a folding carton packaging manufacturer based in Melbourne.
In the keynote presentation, information will be shared about the company’s recent JacPak acquisition as well as the reasons why the business has pivoted to the packaging category with plans to develop a $150 million business.
In a presentation by IVE Group MD Matt Aitken on the packaging category while reporting on the company’s financial results ending 30 June 2024 (FY24), he announced plans to expand its packaging business into IVE’s Silverwater factory in Sydney.
“We acquired the Melbourne-based folding carton producer JacPak on 31 October 2023, and this followed an 18-month review of the Australian packaging market to determine the best approach for IVE’s entry into this sector,” Aitken said.
“JacPak contributed revenue of $28.3 million during FY24 which was broadly in line with annual revenue expectations of around $45 million considering seasonality and transfers to IVE’s Victorian printing operations.
“There have been no changes to the expected synergies, with cost savings of $2.4 million now locked in and $15 million of available capacity for organic revenue growth and we are working towards filling that accordingly.”
Aitken said IVE Group has been encouraged by several new business wins since taking ownership of JacPak for $35 million in October last year, as well as a number of meaningful RFPs currently in the market.
IVE intends to service national brands through packaging operations in both Melbourne and Sydney using its national 3PL logistics network. In Victoria, JacPak will continue to operate as a standalone business with annual revenue capacity of $60 million. In New South Wales, IVE intends to install new packaging equipment at its Silverwater factory in Sydney with the addition of die cutting and gluing equipment to also support the efficient production of folding carton packaging.
The standalone JacPak facility coupled with the Sydney expansion will result in total packaging revenue capacity of around $90 million annually. Additional investment in a second phase would add a further $60 million to capacity resulting in the Group achieving its stated ambition of generating annual packaging revenue of around $150 million over five years.
The inaugural ProPack Packaging Forum would not be possible without the support from its sponsors:
Platinum Sponsor – Durst Oceania
Gold Sponsor – Cyber
Gold Sponsor – Miraclon
Bronze Sponsor – Hybrid Software
Bronze Sponsor – Kissel & Wolf
Bronze Sponsor – Koenig & Bauer
Tickets to the ProPack Packaging Forum can be purchased here.
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